11 – Marketing Communication Tools (Promotion Mix)

Introduction

This unit delves into the communication tools in depth. A company’s promotion mix combines communication techniques to market its products and services. Advertising, sales promotion, personal selling, public relations, publicity, direct marketing, and web marketing are the primary tactics featured.

When a corporation decides how to use the promotion mix best to achieve its marketing goals, it must analyse each component’s relative strengths and weaknesses. Furthermore, they must always identify the entire budget first and then determine the best approach to employ the various tools in the mix to maximise the return on investment. They must balance the many components of the mix to establish an integrated approach to their marketing communications and allocate adequate resources to ensure that each element is successful.

11.1 Advertising

When establishing an advertising programme, marketing management must make four critical decisions:

1. Establishing advertising goals
2. Establishing advertising budgets
3. Creating an advertising plan
   1. Message selection
   2. Media selection
4. Assessing advertising efforts

Major Decisions in Advertising

11.1.1 Establishing Advertising Goals

The first stage in designing an advertising programme is to establish objectives. These goals should be founded on previous judgments concerning the target market, positioning, and marketing mix, which define the role of advertising in the overall marketing programme. An advertising objective is a defined communication task that must be completed with a target audience over a specific period.

Advertising objectives can be classified according to their principal aim as follows:

1. Informative advertising informs consumers about a new product or feature and generates primary demand.
2. Persuasive advertising is intended to generate selective demand for a brand by convincing people that it provides the best value for money.
3. Comparative advertising directly or indirectly compares one brand to one or more other brands.
4. Reminder advertising is designed to keep customers thinking about a product.

How Does Advertising Work?

The marketer may also seek a cognitive, practical, or behavioural reaction from the consumer through advertising. The marketer must investigate the current state of the consumers’ minds regarding their knowledge about the organisation and its products and their attitude toward them. The advertisement works in the consumer’s head in a Response Hierarchy Model. It is assumed that the customer goes through a cognitive, practical, and behavioural state after exposure to the advertisement.

We provide an overview of the Hierarchy-of-Effects Model.

1. Awareness: If it is discovered that the majority of the target audience is unfamiliar with the product/brand, the advertiser’s goal is to raise awareness using basic messaging that repeats the product/brand name.
2. Knowledge: If the target audience is aware of the product/brand but does not know much more about it, the advertiser’s job is to provide them with more information about the product/brand by providing relevant information on product/brand attributes, consumer benefits, records on reliability, price, availability, and so on.
3. Liking: The advertiser must determine how to create a favourable attitude about the product/brand. Other promotional tactics, such as public relations, should be used in this case.
4. Preference: If the target audience does not prefer the product/brand above others, even if they enjoy it, the advertiser must establish consumer preference by highlighting quality, value, performance, and other attributes.

Response Hierarchy Models

      5. Conviction: A target customer may prefer a specific product/brand but lack conviction—a clear choice—to purchase it. The advertiser’s job here is to persuade interested consumers that the particular product/brand is the best choice.

      6. Purchase: Finally, individuals of the target audience should be persuaded to make the final transaction. Additional instruments, such as sales promotion, can repeat this process.

11.1.2 Setting the Advertising Budget

After determining its advertising objectives, the marketer must set the advertising budget for each product and market.

There are four popular approaches for determining the total advertising budget:

1. The affordable strategy entails establishing the promotion budget at a level that management believes the company can afford. Small firms frequently employ this strategy. They begin with total revenues, deduct operational expenses and capital expenditures, and then dedicate some remaining funds to advertising. However, this strategy completely disregards the impact of promotion on sales. It prioritises promotional spending last, which can result in over- or under-spending.
2. The percentage-of-sales strategy involves allocating the promotion budget as a proportion of current or projected sales or as a percentage of the sales price. This strategy is straightforward and assists management in considering the linkages between promotion spending, selling price, and profit per unit. However, it incorrectly considers sales as the cause of promotion rather than the effect. Yearly budget variances generate issues with this strategy, and there is no justification for picking the percentage to utilise.
3. Using the competitive-parity strategy, the promotion budget is determined to match the competitor’s spending. This strategy is supported by the idea that competition knows the industry and that parity helps to prevent promotion wars. In this case, each organisation attempts to have an equal portion of the market voice. Neither of these reasons, however, has proven to be accurate. Competitors frequently lack a reason for their expenditures.
4. The objective-and-task method entails creating the promotion budget by doing the following:

1. 1. Defining specific promotion objectives.
   2. Identifying the tasks that must be completed to attain these goals.
   3. Calculating the costs of completing these jobs.
   4. The suggested promotion budget is the sum of the above expenses.

The aim and task method challenges management to articulate their ideas about the relationships between money spent and promotion outcomes. It is a challenging process, but it yields good results.

11.1.3 Developing Advertising Strategy

Advertising strategy is comprised of two components, and businesses are reaping the benefits of preparing these two components concurrently, as illustrated symbolically below:

Synchronizing the Two Elements of Advertising Strategy

Creating Advertising Messages

The first stage in developing great advertising messages is determining what broad message will be conveyed to consumers (plan a message strategy).

1. Begin by creating a message that emphasises the positives.
2.  Create a creative concept (the big idea). This concept could manifest as an image, a word, or a combination of the two.
3. The creative concept directs the selection of specific advertising appeals to utilise in an advertising campaign. The appeals should be:
   1. Meaningful
   2. Credible

The following key step is to assess the message’s effectiveness. What is said is as essential as how it is said in this context. The creative team must determine the ideal style, tone, wording, and format for delivering the message. Specific styles include:

1. Slice of life: depicts one or more people interacting with the product in a natural setting.
2. Lifestyle: demonstrates how a product fits into a specific lifestyle.
3. Fantasy: builds a fantasy based on the product or its application.
4. Mood or image creation: creates a mood or picture around the product.
5. Musical: depicts one or more people or cartoon characters singing a product-related song.
6. Personality symbol: generates an animated or real-life persona to symbolise the product.
7. Technical expertise: emphasises the company’s product-making expertise.
8. Scientific evidence: extols the findings of a survey or scientific proof that the brand is superior to one or more rival brands.
9. Testimonial evidence: includes a credible or likeable source (celebrity or everyday person) promoting the product, such as Amitabh Bachchan for Maruti Versa.

Media Selection

The following are the primary processes in media selection:

1. Determining reach, frequency, and impact.
2. Reach is the percentage of people in a target market exposed to an ad campaign within a specific period.
3. Frequency is the number of times an average person in the target market is exposed to an advertising message over a specific period.
4. Media impact is a specific medium’s qualitative exposure value.
5. Each media has a unique reach, frequency, and impact, as well as advantages and disadvantages. When making their decision, media strategists take the following aspects into account:
   1. Consumer media habits;
   2. The nature of the product; and
   3. The types of messaging
   4. Cost
6. The media planner must now select the most effective media vehicles (specific media within a given type-magazines, radio, television, etc.). This decision is based on which vehicles have the most reach, frequency, and impact for the least amount of money.
7. The timing of media coverage is also an essential consideration. The advertiser must select how to schedule the advertising for the entire year. They must also investigate the advertising pattern (some advertisers only do seasonal advertising). The following forms should be considered:
   1. Continuity: scheduling adverts evenly across the course of a year.
   2. Pulsing: scheduling adverts in irregular or intermittent bursts throughout a set period.

11.1.4 Evaluating Advertising

1. The advertising programme should regularly analyse the effects of advertising on communication and sales. This reveals whether or not an advertisement communicates effectively. This entails copy testing (measuring the communication effect of an ad before or after it is printed or broadcast).
2. The sales effect is sometimes more challenging to quantify than the communication effect since sales are influenced by factors other than advertising. Methods that can be used include:
   1. Comparing previous sales to previous advertising expenditures.
   2. Create trials to test various levels of spending.

Evaluating Advertising

11.2 Sales Promotion

Short-term incentives are used in sales marketing to stimulate the purchase or sale of a product or service.

11.2.1 Sales Promotion – Objectives

The goals of sales marketing differ significantly.

1. Sellers may employ consumer promotions to boost short-term sales or to enhance long-term market share.
2. Trade promotion goals include encouraging merchants to carry new items and more inventory, getting them to market the product and give it more shelf space, and buying ahead of time.
3. Sales force promotion goals include increasing sales force support for current or new items and getting salespeople to sign up for new accounts.

In general, sales promotion should emphasise the development of consumer relationships.

11.2.2 Tools for Sales Promotion

Manufacturers and retailers both announce sales specials. Manufacturer-advertised promotions could be aimed at customers, resellers, or both. Manufacturers may also publicise sales promotions for their sales personnel. Retailers may also run sales promotions directed at customers. The primary goal of retailer-created promotions is to generate store traffic rather than to sell a specific brand. Manufacturer-announced customer promotions are part of the “pull” approach, while retailer promotions are part of the “push” strategy. Sales promotions are more effective with advertising and “pull-push” methods.

 Consumer Sales Promotions

Consumer sales promotions are sales promotions aimed at end users. They are typically of the “same for less” or “more for the same” variety and may be translated into an apparent price decrease or increased value. ‘Interest promotions, such as free samples, free premiums, contests, and sweepstakes, may or may not require a purchase. Such promotions pique consumers’ interest in products, services, activities, and special events.

“Consumer franchise-building” promotions reinforce brand preference while including a product-related marketing message, such as free premiums, free samples, coupons, and patronage rewards. Price discounts, bundles, premiums unrelated to the purchased product, contests and sweepstakes, and ad refund offers are examples of “non-franchise building” promotions. The following are some examples of commonly utilised consumer promotions:

Price reduction (also known as cents-off): Customers pay a particular amount less than the standard price of a product or service if they acquire it within a given time frame. This can result in a short-term gain in sales, serve as an incentive to try a new product and help product sales during the off-season.

Bonus-Pack: The standard pack includes a free extra quantity of the purchased product. The manufacturer may create a customised larger-sized pack with more products, but the price is proportionately low. This offer can also be rephrased as “buy two, get one free.”

For example, these deals are typically confined to low-volume items such as ready-to-wear gowns and, sometimes, footwear. There have been a few instances where a buyer received a 14-inch TV for free with the purchase of a 21-inch TV.

Samples: This is an offer of a small amount of a product or service for free or at a low cost. One of the marketer’s primary concerns is getting the product into the hands of the consumer, which is typically the key to success in many product categories and some services. The primary goal of sampling is to encourage initial product testing and provide the consumer with first-hand experience with the product or service. Sampling is probably the most effective way to induce trial when the new product is not a market leader.

Premiums: A premium (gift) is a reward a consumer receives for completing a specific behaviour, such as purchasing a product or service. The premium may be free or available to the consumer at a price significantly lower than the standard market pricing.

Examples of premium include receiving a printer for free with the purchase of a computer or receiving a Swiss knife at a significant discount when the buyer purchases a microwave oven.

Refund or rebate (both phrases are interchangeable): When a consumer produces the appropriate proof of purchase to the manufacturer, the company will reimburse the customer for a certain amount. The manufacturer “refunds” a portion of the customer’s payment by mail.

Frequent-user Reward: These are incentives given to those who regularly buy a product or service, such as frequent-flier programmes for airline travellers. The goal is to encourage recurring purchases or visits to a specific retail store. Local grocery or general stores utilise this strategy daily to create loyalty among regular customers. Coupons: Coupons are certificates issued by manufacturers or retailers that entitle the holder to some claimed savings or claim on the specified item. Coupons have an expiry date and cannot be redeemed after that date. A coupon is a versatile tool that may be utilised to achieve various sales promotion goals.

Contests, sweepstakes, and games for consumers: These promotions frequently pique consumers’ curiosity, excitement, and enthusiasm. Individuals compete based on their analytical or creative skills. Participants can win cash, jewels, trips, or products. A panel of judges reviews the contest entries and declares the best one or more entries as winners. Participating consumers’ names are entered into a sweepstakes drawing. A game provides consumers with missing digits or letters to complete a specific digit product or brand name. The prize is awarded to the consumer who completes the task during the campaign time.

Exchange or Buy-back Offers: In India, several consumer durables are not replaced for a long time after they are purchased. Companies or their authorised dealers provide buy-back or exchange offers to encourage such customers to replace their outdated products with new ones. The manufacturer or dealer pays a fair price for the old product and sells a new one. This innovative product is frequently offered in simple interest-free payments.

Point-of-purchase Displays: This category includes in-store demonstrations and exhibitions of products together with pertinent information. The message is clear: “Come and get it, we’ve got it.” In Hindi, a proverb says, “Jo Dikhta Hai, Woh Bikta Hai” (whatever is displayed gets sold). Manufacturers frequently supply such displays to merchants. Retailers want to employ POP items that are visually appealing, educational, and have a substantial impact. Effective displays pique customers’ curiosity, enhance store traffic, and frequently induce spontaneous purchases.

Trade Sales Promotions

Resellers are targeted via trade incentives (distributors, dealers, wholesalers, and retailers). Trade sales promotions are part of a producer’s “push” strategy. The goals of trade sales promotions differ from those of consumer promotions. Producers understand the significance of store assistance. They are the last point of contact in the distribution chain and have more clout with clients. Before making a purchase, consumers may seek the advice of a store, and retailers can often influence the product decision. The following are the primary goals of trade promotions:

1. Develop close relationships with channel members.
2. Encourage in-store merchandising support by arranging displays, shelf space, feature advertising, etc.
3. Obtain new product distribution.
4. Obtain backing for established brands.
5. Manipulate inventory levels held by wholesalers and retailers.

Trade Allowances

Trade allowances are intended to provide financial incentives to resellers to encourage them to purchase. A trade allowance can be provided in a variety of ways, including:

1. Purchasing Allowances: A manufacturer pays a reseller a defined amount or a discount in exchange for purchasing a particular minimum quantity of product within a specified time frame. The payment may be made through a producer’s check or a discounted invoice.
2. Free Goods: The reseller must acquire a particular number of product cases; for each case purchased, a certain amount of free goods is provided. For instance, the offer could be, “One pack containing one dozen of the product free with the purchase of 12 packs.”
3. Slotting Allowances (also known as stocking allowances or introduction allowances): This is the money granted to shops to stock new products. According to William L. Wilkie, Debra M. Desrochers, and Gregory T. Gundlach, retailers justify this by citing the expenditures they suffer by carrying so many new products each year and the dangers of new products. Many businesses are uneasy with this type of concession.
4. Buy-back Allowance: Manufacturers occasionally grant shops the opportunity to restock.

This promotion follows another sale and provides incentives for new purchases. Following the first promotion, if retailers’ inventory levels are very low or nearly depleted, producers may give this second incentive to restore retailer inventory levels to normal.

5. Advertising Allowances: The manufacturer pays the dealer or retailer a predetermined sum of money to publicise the manufacturer’s product. This sum can be a fixed rupee amount or a percentage of gross purchases within a specified period.
6. Display Allowance: A direct payment of money or free goods to the retailer for each item purchased if the party agrees to set up a POP display or execute an in-store promotional programme as stipulated by the marketer. Before the allowance is issued, the marketer requires the retailer to sign an agreement outlining the activity to be completed.
7. Contests and Incentives: Manufacturers may utilise trade contests and special incentives to entice dealers and salespeople to increase their support and selling efforts to meet sales targets and other objectives. Prizes might include a television, stereo, and a trip to exotic locations, among other things. These contests and incentives are sometimes presented to distributors, dealers, wholesalers, or retailers’ salespeople. These incentives include cash payments to salespeople specialising in selling the producer’s product. Push money, also known as SPIFF, is a cash payment.
8. Cooperative Advertising: The producer agrees to share some media expenditures for advertising his items with the dealer. This offer is often contingent on the quantity of merchandise purchased. Payment is made only after the dealer verifies that the advertising was issued. The majority of these advertisements appear in newspapers.
9. Dealer Loader: A dealer loader is a bonus that a marketer delivers to retailers in exchange for purchasing a certain quantity of a product. It may be a premium given to retailers just for buying the specific product quantity, or the condition may be to display it for the time of the promotion, after which the item is delivered to retailers as a premium.
10. Training Program: Manufacturers provide training on their brands to wholesaler or retailer sales staff at their (wholesaler’s or retailer’s) location. According to Michele Marchetti and Andy Cohen, Microsoft has introduced a training programme focused towards value-added resellers called “Helping Clients Succeed.” The three-day training was created to assist resellers in better understanding Microsoft software.

Internet Sales Promotions

The number of businesses adopting Internet promotions is growing. Contests and sweepstakes are two of the most common methods to entice people to visit marketers’ websites. America Online frequently runs prize giveaways to entice users to visit its advertisers’ sites. The awards might range from large quantities of money to everyday prizes such as goods emblazoned with the internet service’s name.

For example, famous Internet promotion sites in India include Hungama.com and Contest2win, where corporations such as Pepsi, Cadbury, Sony, and Levis routinely host online contests with enticing prizes.

With the expanded availability of Broadband Internet and the purchase of computers by an increasing number of families, our country is gradually catching up.

11.3 Public Relations

Building good relations with the company’s many stakeholders includes obtaining favourable publicity, developing a good “corporate image,” and dealing with or avoiding unfavourable rumours, stories, and occurrences.

For example, Cadbury India’s efforts to combat an infestation reported from a retail location resulted in a dramatic shift in their sales approach, with Amitabh Bachchan serving as their ombudsman.

The primary functions are:

1. Public relations or press agency
2. Product promotion
3. Public relations
4. Lobbying
5. Relations with investors
6. Development

Public Relations Departments may carry out any or all of the following tasks:

1. Public relations promote products, places, ideas, people, events, organisations, and countries.
2. Public relations can have a considerably more significant impact on public awareness than advertising at a much cheaper cost.
3. Despite its potential capabilities, public relations are frequently referred to as a marketing stepchild due to its limited and infrequent utilisation. This, however, may be changing. Many businesses today want public relations to be more active in marketing and promotion strategies. Marketing public relations departments are being established to emphasise this critical function more.

Public Relations Tools

1. Important Public Relations Tools: The following are primary tools:
   1. News
   2. Speeches
   3. Special events
   4. Written materials (such as annual reports, brochures, articles, company newsletters, and magazines)
   5. Audio-visual media (such as films, slide-and-sound programs, video and audio cassettes)
   6. Materials for corporate branding (such as logos, stationery, brochures, signs, business forms, business cards, buildings, uniforms, and company cars and trucks).
2. Businesses can improve their public relations by donating time and money to public service and other corporate image-building activities.

11.4 Personal Selling

Personal selling is how a salesperson sells a product, service, or solution to a customer. Salespeople tailor the benefits of their service to a client’s requirements. Nowadays, personal selling entails cultivating long-term client relationships.

Personal selling, in comparison to other marketing communications strategies such as advertising, has the following characteristics:

1. Use as minimal resources as possible.
2. The majority of the pricing factor is negotiated.
3. The products are very complex.
4. There is contact between the customer and the seller after the sale to establish an ongoing relationship.
5. The client needs precise details.

A five-step selling method is used in personal selling. The five stages are as follows:

1. Prospecting;
2. Making the first contact with the consumer; and
3. Making the sales call
4. Handling objections
5. Finally, closing the sale

11.5 Direct Marketing

“Direct marketing is an interactive marketing system that employs one or more advertising mediums to elicit a measurable reaction and/or transaction at any place.”

A variety of reasons contribute to the attraction of direct marketing. The primary factors are as follows:

1. Consumer credit card availability,
2. Professional agency availability,
3. Competitive pressures, rising media costs, and market fragmentation,
4. Rising family incomes, particularly dual-income households and
5. Technological advancements.

To deploy direct marketing successfully, marketers must develop objectives, specify target markets, choose methods, and establish evaluation criteria.

11.5.1 Direct Marketing – Objectives

The goals of direct marketing are typically focused on eliciting a direct response regarding behaviour. Order response rates vary depending on product category and price, but a 2% order placement is considered satisfactory in most circumstances. Some businesses use direct marketing to inform and educate customers about a product or service in the hopes that it will prompt future actions, such as reminding customers about special offers, image building, maintaining customer satisfaction, strengthening relationships, and assuring customers about purchases.

11.5.2 Market Segmentation

A promotional programme’s success depends on market segmentation and targeting the correct clients. Customers can be classified based on age, gender, income, education, lifestyle, and stage in the family life cycle, among other factors.

Direct marketers use a database. It is more than just names and addresses; it identifies and profiles the company’s best customers and efficiently targets client segments.

Ongoing database updates assist businesses in identifying trends and purchasing patterns. Companies can use this information to strengthen customer relationships by more efficiently meeting their needs and desires.

The database should answer the following questions:

1. Where do they reside?
2. How did they first establish contact?
3. What have they bought?
4. How frequently do they buy?
5. How much money did they spend on their purchases?
6. Do they order or buy via the Internet, mail, phone, or in person?
7. What is known about them and their family, including occupation, education, children, interests, attitudes, and payment histories, among other things?
8. In the case of B2B, who are the influencers, users, decision-makers, and buyers?
9. The location of the corporate headquarters and branch offices.

Well-managed businesses frequently create and maintain their databases. Several independent research suppliers sell this type of information. A database aids in the creation of a mailing list that minimises waste coverage to the greatest extent possible. A good database is essential for direct marketing to be effective. Suppose a direct marketing company purchases a database from a third party. In that case, it is better to pay a bit more for a decent database that has been thoroughly researched and segmented than it is to pay for a list of names and addresses.

11.5.3 The Benefits of Direct Marketing

1. Direct marketing has the advantage of contacting a large number of well-defined target clients while almost eliminating waste coverage.
2. High-quality databases are accessible from independent vendors, and marketers can precisely segment client groups.
3. The direct marketer can personalise the message.
4. Direct marketing can provide customers with nearly flawless deals.
5. Marketers can create the required frequency level based on the medium.
6. Direct marketing allows for creative freedom in a variety of channels.
7. Direct marketers can create a list of specific profiles for direct mail in minutes.
8. Direct marketing is more effective at establishing customer relationships.
9. It is incredibly cost-effective, considering the number of sales each contact makes.
10. The outcomes are most precisely measured.

11.5.4 Media and Direct Marketing Offer

Edward L. Nash states five major decision areas exist: product, offer, medium, distribution method, and creative strategy. The marketer must decide upon these difficulties and construct a suitable message. Direct marketers employ all major media channels, including direct mail, telemarketing, direct-response broadcasting, print, the Internet, and E-mail.

1. One-Step Approach: The marketer uses the media to obtain an order. For example, exercise equipment and home supplies are advertised on television, and many magazines include subscription forms in their editions. The viewer or reader places the order by dialling a toll-free number. Magazine subscription forms can be filled out and mailed in pre-addressed envelopes.
2. Two-step Approach: This may necessitate the employment of more than one medium. Telemarketing can be used to screen or qualify prospects before attempting to elicit a behavioural reaction in the second stage. Many banks, for example, use telemarketing to assess potential customers based on interest, employment, and income and then follow up by sending a representative with extra information to clinch the sale.

Direct Mail: Most of us are familiar with unsolicited mail, sometimes called direct mail. Some consider it “junk mail,” and we either toss it away or disregard it without reading it. Businesses of all sizes and shapes use direct mail. This mail is often based on mailing lists purchased from third-party vendors or, in some circumstances,

is limited to consumers who have previously purchased from the company. Google, Yahoo, Hotmail, AOL, Amazon, Fabmart, Indiatimes, and many others, for example, have massive lists of home and e-mail addresses.

On average, direct mail generates lower response rates from potential clients. The expense of direct mail as e-mail is negligible. According to John Goodman, CEO of Ogilvy & Mather India and South Asia, the Internet is the ideal medium for direct marketing. For example, HUL (Denim aftershave, Lux), Hyatt Regency, and various banks have successfully employed direct mail for credit cards.

Catalogues: Both consumer and business-to-business enterprises may distribute catalogues of their entire product lines, primarily in print and online, as CDs or movies. Given the worldwide reality, many businesses sell apparel and cosmetics in catalogues. According to the Direct Marketing Association, catalogue sales hit $17.3 billion in 2006. The Internet has strengthened the catalogue sector, and companies now publish their catalogues and accept orders online. Catalogues from companies like Fabmart, Amazon, McGraw-Hill, Prentice-Hall, Dell, and others are available on their websites, and anyone may place an order right away. Some businesses began as catalogue companies and then expanded into retail stores, such as First and Second Bookseller, which started with a website that exhibited its catalogue but now has a retail outlet in New Delhi. Catalogues are used by Anjali Textiles, Otto-Burlingtons Mail Order (P) Ltd., Mothercare India, Charag Din, and others.

Some authors use direct mail or catalogues to distinguish between manufacturer- and trade house-originated direct mail marketing. Direct Mail Marketing is used when the marketer is a manufacturer, and Mail Order Marketing or Mail Order Business is used when the source is a trading firm.

Direct marketers can employ broadcast media such as television and radio. The majority of direct marketing advertising is done on television. This type of advertising might take the shape of direct-response or support advertising. Customers are encouraged to place orders by dialling a toll-free phone number in direct-response advertising. Support advertising often advises customers to enter sweepstakes or to expect something in the mail. An excellent example of support advertising may be found on the NDTV news channel. Customers are encouraged to use Airtel’s cellular service and make two calls before answering a straightforward question of the day. The winner receives 100,000 for the correct answer. NDTV broadcasts the message, and the day’s winner is proclaimed in the news.

Some businesses use infomercials, a new type of direct-response advertising on cable and satellite. These extended commercials range from 30 to 60 minutes in duration and mimic documentaries. Long commercials about losing weight, portable workout equipment, and satisfied customers attesting to the tremendous benefits and ease of use are highly known to Indian TV viewers. Of course, a toll-free number is provided to place the order promptly. Infomercials have been reported to be very effective, with audiences watching them and placing orders.

Teleshopping has been boosted by the widespread usage of credit cards and the availability of toll-free telephone numbers in more industrialised countries. For example, Home Shopping Network sells products and services 24 hours a day, seven days a week. The show’s host offers inexpensive pricing on various commodities such as jewellery, kitchenware, fitness products, insurance, and CDs, among others. Customers make purchases from the comfort of their own homes by dialling a toll-free number, and the desired item is delivered within 48 hours. QVC is a significant shopping channel reaching 84 million households in the United States, Germany, and Japan.

So far, there appear to be no daylong teleshopping programmes in India. Some of the programmes that are shown in India are essentially infomercials. Dees’ Home Shopping (DD and C&S channels) sells home appliances, car accessories, fashion clothing, footwear, beauty care goods, air tickets, and groceries, among other things. The other two names are Teleshopping Network (ATN, DD, Sun, local C&S) and United Teleshopping (DD National). So far, the maximum time given to such programmes in India is roughly 5 hours daily.

Media in Print: Newspapers and magazines are not considered “good choices” for direct marketing. There are just too many advertisements fighting for our attention. Specific interest newspapers focusing on financial problems and sports and hobbies magazines are occasionally employed.

Telemarketing is the term used to describe direct marketing by telephone. It increases the marketer’s chances of influencing the prospect and gaining a customer. As previously said, it is most commonly employed in the screening process. Companies hire many phone callers, typically females, or use hired agents. Call centres have evolved into a thriving hub of telemarketing activity. Several teams of 5 to 6 people are formed, each with a supervisor. Individual team members use headsets and sit in front of a computer terminal. They dial numbers from a list, deliver a sales pitch based on a pre-rehearsed script, and update information on the computer screen.

11.6 Online Marketing

Online marketing takes numerous forms, and as the medium evolves, the diversity will grow. Advertising on the Internet today is divided into ad banners, websites, ad buttons, sponsorships, interstitials, and classified ads.

11.6.1 Advantages

The following are the benefits of online marketing:

1. Low-Cost and Long-Term Marketing Strategies: The Internet has evolved into the buying public’s information superhighway. Compared to other kinds of marketing, such as printing brochures, making television or radio advertising, or managing a call centre, Internet Promotion has the advantage of lower budget and storage expenses.
2. Market Penetration: With millions of people searching for products and services online, small firms may enter new markets for a fraction of the expense of traditional marketing tactics.
3. Low-Cost, Instant Connection: Email allows instant communication if the client or business affiliate is across the street or the globe. It makes it easy for customers to stay in touch and encourages repeat purchases. As a result, an excellent online approach can transform a tiny web firm into a virtual cost-cutting and income-generating machine.
4. Timeless Content: Internet promotion has the added benefit of being long-lasting. Participation in a trade show or conference loses its sales impact after it is over, whilst an advertisement in a newspaper or business magazine may quickly lose its sales-generating value within a day or two or as soon as the following issue is issued.
5. Real-Time Statistics for Measuring Promotional Campaign Effectiveness: One of the most significant benefits of Internet Promotion is that its success can be measured. Marketers can employ technologies that provide real-time statistics on unique visitors, repeat visits, and click-through rates (CTR) on adverts to assess the effectiveness of a promotion campaign.
6. Time-Saving: Another significant benefit of Internet Promotion is that it saves time because it generally eliminates the need for counselling on product uses and benefits, service information, and sales administration. Visitors can access “frequently asked questions” to assist themselves and buy online without staff involvement.

11.6.2 Disadvantages

The following are the downsides of online marketing:

1. Difficulty attracting customers: Small businesses may lack the resources to pay for paid directory inclusion and pay-per-click inclusions and must frequently rely only on search engine optimization or word of mouth to bring traffic to their websites.
2. Difficulty in Evaluating Transaction Authenticity: Another significant disadvantage of conducting business promotion online is that it may be difficult for businesspeople and consumers to verify the legitimacy of a transaction altogether. With the advent of Internet credit cards and identity fraud, small businesses must take costly security measures to limit their vulnerability to fraudulent transactions.
3. Isolation of Salespeople and Customers: Another disadvantage of Internet marketing is the isolation of customers and businesspeople. There is little human touch between the customer and the salesman before and after the sale.

11.6.3 Tools Used